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Collective Bargaining and Within-Establishment Pay Inequality in Italy

Author

Listed:
  • Carlo DELL’ARINGA
  • Claudio LUCIFORA
  • Nicola ORLANDO

    (Universita' Cattolica di Milano)

Abstract

This paper investigates the structure of within-establishment wage inequality in Italy, using linked employer-employee data (European Structure of Earnings Survey). The effect of work organi- sation practices, pay policies, collective bargaining procedures and industrial relations settings are analysed in the context of wage differentials in the firm. The main findings suggest that employees’ characteristics, work organisation practices and firm size are relevant in shaping pay inequality within establishments. Decentralised bargaining is shown to be associated with higher (unconditional) within-establishment wage dispersion; however, when checking both for worker and firm heterogeneity, the association changes sign or is not (statistically) significant. Finally, when the endogenous sorting of establishments is adequately modelled, no causal effect of decentralised bargaining on within-establishment pay inequality is detected.

Suggested Citation

  • Carlo DELL’ARINGA & Claudio LUCIFORA & Nicola ORLANDO, 2005. "Collective Bargaining and Within-Establishment Pay Inequality in Italy," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 241-265.
    • Handle: RePEc:vep:journl:y:2005:v:113:i:2:p:241-265
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    Cited by:

    1. Francesco Devicienti & Bernardo Fanfani & Agata Maida, 2019. "Collective Bargaining and the Evolution of Wage Inequality in Italy," British Journal of Industrial Relations, London School of Economics, vol. 57(2), pages 377-407, June.

    More about this item

    Keywords

    new work organisation; employees representation; variable pay policies.;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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